https://www.taxtmi.com/caselaws?id=7244 The court ruled in favor of the petitioner-company, holding that it was not liable to pay tax under section 172 of the Income-tax Act as a guarantor. The court found that the time charterers, who were the disponee owners of the ship and the iron ore, did not earn any freight, making section 172 inapplicable. Additionally, the petitioner-company's liability was limited to the time charterers, not the ship owners. The court also determined that the assessment order violated principles of natural justice as the petitioner was not given a fair hearing. The guarantee bond's enforceability under Article 299(1) of the Constitution was not addressed due to insufficient pleading. en-us Mon, 13 Nov 1967 00:00:00 +0530 Mon, 16 Feb 2009 10:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7244 The court ruled in favor of the petitioner-company, holding that it was not liable to pay tax under section 172 of the Income-tax Act as a guarantor. The court found that the time charterers, who were the disponee owners of the ship and the iron ore, did not earn any freight, making section 172 inapplicable. Additionally, the petitioner-company's liability was limited to the time charterers, not the ship owners. The court also determined that the assessment order violated principles of natural justice as the petitioner was not given a fair hearing. The guarantee bond's enforceability under Article 299(1) of the Constitution was not addressed due to insufficient pleading. Case-Laws Income Tax Mon, 13 Nov 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7244